Published on 18 Feb 2022 on InvestorPlace via Yahoo Finance
With the coronavirus pandemic forcing an unprecedented response by the Federal Reserve, it set in motion a dynamic that helps dividend stocks to buy.
The consumer price index increased by 0.6% in January leading to an annual inflation market of 7.5%. The magnitude of the spike caught many analysts off guard. However, the price increase was no surprise.
As you know, investors began rotating out of risk-on assets quite aggressively early this year. With the Fed signaling a pivot toward a hawkish monetary policy, it meant that the central bank would no longer indirectly subsidize growth through cheap costs of borrowing.